Polymer Factory announces outcome of the rights issue

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The subscription period in Polymer Factory Sweden AB’s (“Polymer Factory” or the “Company”) rights issue of shares, in which the public also was given the opportunity to participate, ended on 10 March 2023. The rights issue was subscribed to a total of approx. 70 percent, including pre-subscription and guarantee commitments. Polymer Factory will thus be provided proceeds of approx. SEK 6.1 million before deduction of transaction related costs. The outcome means that Polymer Factory can finance acceleration of sales by, among other things, increase sales and marketing activities, employ an additional sales resource, expand the organization, and continue to build and maintenance the Company’s portfolio of IP rights and ISOs. A formal decision about allocation of shares is estimated to be taken on 14 March 2023.

CEO Elin Mignérus comments:

“I would like to thank everyone who participated in the rights issue – both existing shareholders for their continued confidence in our business, and new shareholder whom I welcome to Polymer Factory. Despite a though market climate we have secured sufficient funding to support our acceleration of sales and ongoing build-up and maintenance of Polymer Factory’s portfolio of IP rights and ISOs. Following the certification of our quality management system (ISO 13485) and the launch of our business area DNGs, we are confident that the funds from the rights issue create a solid ground for broadening our customer base further, as well as increase sales. I look forward to continuing the work to fulfill our financial and operational objectives together with the rest of the team.”

Subscription, allocation, and payment

The rights issue was subscribed for a total of approx. SEK 4.7 million, including pre-subscription commitments from the Board, Management and external investors of approx. SEK 3.0 million, corresponding to a subscription ratio of approx. 54 percent. In addition, underwriting commitments corresponding to approx. SEK 1.4 million have been activated, corresponding to 16 percent of the issue volume. The total subscription rate in the rights issue was 70 percent and the company will thus be provided with SEK 6.1 million before deduction of transaction related costs of approx. SEK 1.5 million (including guarantee compensation of approx. SEK 0.5 million, for the scenario where all guarantors choose to have their compensation paid as cash).

Through the rights issue, a total of 3,839,024 shares are issued. The Board of directors expects to formally decide on the allocation of shares on 14 March 2023 in accordance with the allocation principles described in the memorandum published by the Company on 23 February 2023. Subscribers who are allotted shares without pre-emptive rights will receive settlement notes, which are expected to be sent out on, or around 14 March 2023. Allotted shares without pre-emptive rights shall be paid in accordance with the instruction on the settlement note.

Compensation for underwriting commitments

For submitted underwriting commitments in the rights issue, a cash compensation of twelve (12) percent of the guaranteed amount or alternatively, fifteen (15) percent of the guaranteed amount is paid in the form of newly issued shares at the subscription price of SEK 1.60 per share, which corresponds to the established subscription price in the completed rights issue. Any resolution to issue new shares to the underwriters will be taken by the Board of directors and published in a separate press release. Such issue resolution will be made based on existing authorization from the Annual General Meeting on 10 May 2022. Guarantors who wish to receive guarantee compensation in the form of shares shall inform Sedermera Corporate Finance AB as soon as possible after the current announcement of the outcome of the completed rights issue.

Number of shares and share capital

When the rights issue has been registered with the Swedish Companies Registration Office, the total number of shares in Polymer Factory will have increased by 3,839,024 shares, from 6,860,398 shares to 10,699,422 shares. The Company’s share capital will, upon registration, have increased by approx. SEK 383,902.40, from approx. SEK 686,039.80 to approx. SEK 1,069,942.20. The shareholders who have not participated in the rights issue will be subject to a dilution effect corresponding to approx. 36 percent of the votes and capital.

Trading in BTA

Trading in BTA’s (paid subscribed shares) will take place on Spotlight Stock Market until the rights issue has been registered with the Swedish Companies Registration Office. The registration is expected to take place around 28 March 2023.

Advisors

Sedermera Corporate Finance AB is the financial advisor and Markets & Corporate Law Nordic AB is the legal advisor to Polymer Factory in connection with the Rights Issue. Shark Communication AB is communications advisor and Nordic Issuing is the issuing agent.

This disclosure contains information that Polymer Factory is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 13-03-2023 16:02 CET.